US Fed chief: White House Using Probe to Pressure Federal Reserve

By Staff, Agencies

US Federal Reserve Chair Jerome Powell has accused President Donald Trump’s administration of using a criminal investigation as a form of “intimidation” aimed at influencing the central bank’s monetary policy decisions.

Speaking on Monday, Powell said the probe is being leveraged to pressure the Federal Reserve amid ongoing criticism from Trump over interest rates and the cost of renovating the Fed’s historic headquarters. Trump has repeatedly attacked Powell for resisting deeper rate cuts and has labeled the $2.5 billion renovation project excessive.

According to a New York Times report published Sunday, the investigation into whether Powell misled Congress about the scope and cost of the renovation was authorized in November by Jeanine Pirro, the US attorney for the District of Columbia and a close ally of Trump. The report cited sources familiar with the matter.

In a video statement posted on X, Powell rejected the stated rationale for the investigation, saying it had nothing to do with his congressional testimony last June or the renovation project itself. He described the Justice Department’s justifications as mere “pretexts.”

Trump has denied any involvement in the inquiry. Speaking to NBC News on Sunday, he said he was unaware of the investigation but renewed his criticism of Powell’s performance, saying the Fed chief was “not very good” at his job or at managing construction projects.

The president has repeatedly floated the idea of replacing Powell, arguing that the central bank’s reluctance to cut interest rates more aggressively is holding back the US economy.

Powell, who has served as Fed chair since 2018 after being appointed by Trump and later reappointed by former President Joe Biden in 2022, reiterated that he has carried out his duties “without political fear or favor” and intends to continue doing so regardless of pressure from the White House.